AIM-listed Hangar 8 has closed a funding round and acquired International JetClub for £1.1 million.

A £4.2 million placing from Oxfordshire-based Hangar 8 has allowed it to purchase International JetClub (IJC).

Hangar 8 has bought International JetClub for a total consideration of £1.1 million in cash, the issue of 500,000 new ordinary shares and a payment equivalent to IJC’s net asset on completion of the acquisition, estimated to be £2.6 million.

As well as providing funds for the company purchase, the placing will provide additional working capital for the continued expansion of Hangar 8.

IJC, based in Farnborough, provides management and charter services to high net worth owners of large private jet aircraft. According to a statement, IJC has a similar business model to Hangar 8 in that it derives its revenues from contracted management fees and charter services.

Dustin Dryden, chief executive of Hangar 8, comments, ‘The combination of Hangar8 and IJC operating as one enhanced group marks a real step change in the scale, depth and breadth of our business.

‘We believe there is further scope for consolidation within the sector and are confident that the enlarged group will continue to grow at a pace, whether organically or through further acquisitions, and remain at the forefront of sector developments.’

As part of the deal, Murray Law, owner and founder of IJC, is set to be appointed as vice chairman of the company.

Law says, ‘By its nature, ours is a global industry which increasingly requires UK operators to be able to compete internationally and especially beyond Europe if we are to serve our existing and prospective clients better. 

‘The scale of our combined group will enable the separate global strategies we each had previously to be pursued with greater strength, broader depth and increased effectiveness.’